NWE gas supply likely to tax naphtha for crackingPosted by Langhoff Grace on January 28th, 2021 Greater accessibility of lp in Northwest Europe during the first fifty percent of October is most likely to tax the naphtha market as the recommended splitting feedstock among petrochemicals firms, resources stated Friday. " Gas rates have come off today versus naphtha. You will certainly begin to see it becoming much more competitive with petrochemicals [firms] decreasing their naphtha purchases," said one light ends trading source Friday. " There was biocides ," a source stated Friday, adding that "at the end of following week freights are coming, so prices will certainly need to come down." On a propane/naphtha spread basis, nevertheless, place rates are not yet supporting any prompt needs for gas amongst petrochemicals companies. At the close Thursday, the rate of naphtha freights CIF NWE was .75/ mt under the price of propane CIF NWE, which was assessed at 2.50/ mt. But open arbitrage opportunities on the back of high NWE rates are expected to cause a healthy influx of gas cargoes to the region towards completion of September and also into early October, trading resources claimed. Freights are expected to arrive from Algeria and Houston, in addition to from the Bonny terminal in Nigeria, sources stated. "Arbs are open from West Africa, the USGC and the Mediterranean," a source claimed. In addition, the Karsto LPG export terminal on the west coastline of Norway resumed exports a week ago after completing arranged maintenance, trading sources said. The terminal remained in upkeep between August 18 as well as September 8, resources said. Another Norwegian export terminal, at Mongstad, nevertheless, stays shut for maintenance till the end of September, according to market sources. The expected influx of gas cargoes put a cap on the current rise of freight rates on a CIF basis in Northwest Europe, which maintained levels at around 0/mt throughout the week, complying with a /mt spike in very early September, Platts information reveal.Like it? Share it! More by this author |